PRESS RELEASE OF CONSUMER PRICE INDEX ON BASE 2024=100 FOR MARCH, 2026

1. At a Glance

• Consumer Price Index (CPI) on revised base 2024=100 measures retail inflation for India; March 2026 release is among the earliest data points of the new series. [S1][S2]
• Released monthly by the National Statistical Office (NSO), Ministry of Statistics & Programme Implementation (MoSPI). [S1][S3]
• CPI is the headline inflation gauge used by the RBI Monetary Policy Committee (MPC) for its 4% (±2%) flexible inflation target under the RBI Act, 1934 (Sec 45ZA). [S1]

2. Why in the News

• PIB press release dated 13 April 2026 reported All-India CPI (General) y-o-y inflation at 3.40% (Provisional) for March 2026, with Rural 3.63%, Urban 3.11%. [S1]
• Consumer Food Price Index (CFPI) inflation at 3.87% (Rural 3.96%, Urban 3.71%). [S1]
• February 2026 (Final) headline CPI was 3.21%, indicating a mild uptick into March. [S1]
• This is among the first releases under the new 2024=100 base series, which replaced the 2012=100 series on 12 February 2026. [S2][S3]

3. Background & Evolution

• CPI base year revisions: 1982 → 2001 → 2010 (CPI-IW) ; CPI (Rural/Urban/Combined) base 2010=100 (Jan 2011) → 2012=100 (Feb 2015) → 2024=100 (Feb 2026). [S2][S3]
• 2024 revision rests on the Expert Group on Comprehensive Updation of CPI report and HCES 2023-24 consumption data. [S3]
• Adoption of COICOP-2018 (Classification of Individual Consumption According to Purpose) aligns India with UN Statistics Division norms. [S2][S3]

4. Core Static Facts

• Compiling agency: NSO, MoSPI; price data collection: Field Operations Division of NSS, MoSPI. [S2]
• Base year: 2024 = 100; Classification: COICOP-2018 (replaces 6-group structure). [S2]
• Weights source: Household Consumption Expenditure Survey (HCES) 2023-24. [S2]
• Item basket (All-India weighted): 358 items (up from 299); Goods: 308 (from 259); Services: 50 (from 40). [S2]
• E-commerce capture: 12 online markets added in 12 towns with >25 lakh population. [S2]
• Release frequency: Monthly, 12th of every month, by NSO. [S1]
• March 2026 indices (Combined): CPI (General) 104.84; CFPI 104.14. [S1]

5. Multi-Dimensional Analysis

Economic - Headline CPI 3.40% is below RBI's 4% target midpoint, supporting space for accommodative monetary policy. [S1] - Rural-Urban inflation wedge of ~52 bps (3.63 vs 3.11) reflects sharper food price effect on rural baskets. [S1]

Statistical / Methodological - COICOP-2018 enables international comparability with OECD/UN datasets. [S2] - Inclusion of online/e-commerce price quotes modernises capture of consumption shifts. [S2] - Larger services basket (40→50) better reflects India's services-led consumption. [S2]

Governance / Federal - State-level indices empower State Finance Commissions, DA calculations, and minimum wage indexation. [S2]

Social - CFPI at 3.87% > headline → food inflation disproportionately hits low-income households (food has higher weight in their consumption). [S1]

6. Recent Developments (last 12-18 months)

• 12 Feb 2026: First CPI release on base 2024=100 (for January 2026). [S2]
• Feb 2026 (Final): CPI 3.21%; CFPI 3.47%. [S1]
• 13 Apr 2026: March 2026 release — CPI 3.40%, CFPI 3.87%. [S1]
• Parallel GDP base-year updation FAQ released by MoSPI on 26 Feb 2026. [S3]

7. Prelims Hooks

• New CPI base year: 2024 = 100, replacing 2012=100. [S2]
• First release of 2024 series: 12 February 2026. [S2]
• Classification framework adopted: COICOP-2018 of UN Statistics Division. [S2]
• Weights derived from HCES 2023-24. [S2]
• All-India weighted item count: 358 (Goods 308 + Services 50). [S2]
• 12 online markets in 12 towns (population >25 lakh) added. [S2]
• CPI (General) inflation, March 2026 (Provisional): 3.40%. [S1]
• CFPI inflation, March 2026 (Provisional): 3.87%. [S1]
• Rural inflation March 2026: 3.63%; Urban: 3.11%. [S1]
• Compiling body: NSO, under MoSPI (not RBI, not CSO standalone). [S1]
• Price data collected by Field Operations Division of NSS. [S2]
• RBI's flexible inflation target: 4% ± 2% under RBI Act, 1934 (post-2016 amendment). [S1]
• CPI (General) index value, March 2026 Combined: 104.84. [S1]

8. Mains Relevance

• GS-III — Indian Economy: "Issues relating to planning, mobilization of resources, growth, inflation."
• GS-II — Governance: statutory institutions (RBI, MoSPI).

Question stems: 1. "Discuss the significance of rebasing the Consumer Price Index to 2024=100 for India's monetary policy framework." 2. "The persistent gap between CFPI and headline CPI reflects structural rigidities in India's food economy. Examine." 3. "Examine how adoption of COICOP-2018 and incorporation of e-commerce price data improve the credibility of India's inflation statistics."

9. Related Topics to Study Next

• WPI (Wholesale Price Index) base 2011-12 — DPIIT, complementary measure.
• CPI-IW (Industrial Workers) base 2016=100 — Labour Bureau, used for DA.
• HCES 2023-24 — basis of new CPI weights and poverty estimates.
• Monetary Policy Framework Agreement (2015) & RBI Act Sec 45ZA-N — inflation targeting.
• Core inflation vs headline — analytical decomposition.
• GDP base-year revision (2022-23 series) — parallel MoSPI updation. [S3]
• National Statistical Commission (NSC) — oversight body.
• COICOP-2018 — UNSD classification.

10. Common Errors / Trap Areas

• CPI is released by NSO/MoSPI, not RBI; RBI only uses it for MPC decisions.
• Base year is 2024, not 2022 or 2023; HCES used is 2023-24.
• CPI-Combined, not CPI-IW, is the nominal anchor for MPC (since 2014 Urjit Patel committee).
• CFPI ≠ WPI Food Articles; CFPI is a sub-index of CPI.
• COICOP-2018 (not 1999) is the version adopted.
• Inflation target is 4% ±2%, not "below 4%".

11. Sources

• [S1] Press Release of CPI on Base 2024=100 for March 2026 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2251519 — (tier 1)
• [S2] FAQs on CPI 2024 Series, MoSPI — https://www.mospi.gov.in/uploads/documents/documents/1770891066052-Annexure_V.pdf — (tier 1)
• [S3] Expert Group Report on Comprehensive Updation of CPI, MoSPI — https://www.mospi.gov.in/uploads/Marquee/doc-0aee0026-bf32-4213-ae4f-c5308088444e.pdf — (tier 1)